Why Was 2021 a Significant Year in Hospitality?

The past year has seen a dramatic shift in how the hospitality industry operates. 

Some changes were small, not altering the day-to-day running of a venue much at all. Some were bigger, with the potential to alter a venue’s core operating principles themselves.

But one thing has become apparent. Some of the changes that we’ve seen, whilst at first seeming temporary, have stuck around; a ‘permanent pivot’, if you will.

So, how has this happened?

In this article, we’ll delve deeper into the development of the hospitality industry to see how a global pandemic forced an industry to change its ways for good.

• Digital payments took over
• The rise of contactless ordering
• Online ordering became the new norm
• Local governments did their part
• Sustainability & ethical dining increased
• Why was 2021 a significant year in hospitality?

Digital payments took over

As hygiene became the number one focus for battling COVID, it came as no surprise to see physical payments take a nosedive. And that’s because no matter how you cut it, cash is pretty dirty. And there’s no better mode of transmission than something the general public handles day in, day out.

Cash became almost taboo in the early days of the pandemic. As somebody who worked in hospitality during that time, I can tell you first hand the strange fear it put into your head when a customer tried to pay with cash. Most were okay with our requests to pay via card, and the national rollout of handmade ‘card payments only’ signs began.

It was a very quick transition and, as backed up by many of those handmade cards still occupying counter space to this day, it seems likely to be a permanent change.

And this is backed up by the data.

Pre-pandemic, in 2019, consumer data company Statista found that around 2.3 million Australians were using digital payments. That figure jumped up to 3.8 million by 2021, a rise of 65%, and it’s estimated to continue this growth to 6.2 million by 2025.

As far as operating procedures go, this was a small pivot, yet it seemed this relatively small pivot opened the door for a digital revolution.

The rise of contactless ordering

Another change you will have noticed when entering just about any building in the past two years is the requirement to check in, usually via a QR code.

This was another relatively minor pivot, but it did make us all realise the potential of QR codes for so much more than check ins.

The tech has always been there too. QR codes aren’t a new thing, but there was a certain scepticism surrounding them, a hesitance to truly harness their capabilities to your venue’s benefit.

Suddenly, we had a way for our customers to order in a completely contactless way. Digital menus were being accessed via QR codes on tables, doing away with the need for physical menus. And online table ordering also meant less chance for human error. 

Venues were running more smoothly.

In August of 2019, only 4.9% of Lightspeed venues in Australia were taking advantage of QR table ordering. By August 2021 that number had risen to 15.2%, an increase of 210%.

But what about if your venue couldn’t seat people? This is a situation that heralded perhaps the most significant pivot of the digital revolution in hospitality.

Online ordering is a new norm

With many venues being forced to close due to lengthy lockdowns, they had to figure out new ways to survive. The eventual hero may have been obvious from the off, but its staying power was not.

Ordering online gave venues an avenue to keep providing their goods to customers, even if they had to enjoy them at home. Every type of venue from the smallest neighbourhood cafe to fine dining royalty began offering their products for delivery or pick up.

It gave some venues a means to keep their floor staff employed, tasking them with making deliveries or prep work. In fine dining in particular it gave customers a new connection with food, with cook at home meal kits becoming the preferred means to ensure the high quality of their food wasn’t impacted too drastically.

It was something we all expected to wane once the lockdowns ended, but it hasn’t. The familiar chimes of an iPad receiving an online order still ring out. 

And it’s not limited to restaurants either.

Lune Croissanterie began offering delivery on their baked goods during lockdown, and it saw an opportunity that, until then, whilst under their noses, wasn’t truly appreciated.

Lune Co. GM Ryan Butler said:

“For Lune Croissanterie in every discussion never was it a product we considered selling online and then as soon as (covid happened) and there was uncertainty everywhere, the only model that made sense was to go online – it became the way of the world” 

“We had to make change to a business model that we didn’t think would require any change” 

“Moving to an online model helped us understand how our business had flexibility that we didn’t realise it had and opened up more creative thinking for us as a business” 

“Online will forever be a part of the journey”

Local governments did their part

Even outside of lockdowns, venues were still struggling due to caps on the amount of people who could be in a space at any given time. People per square metre limitations meant that even if a venue could seat people, they couldn’t fill up. This became a problem in itself, and it’s something that local governments acted on to alleviate some of the damage caused.

Red tape was scrapped on numerous government licences. So too were fees. In New South Wales you can still gain access to outdoor seating for absolutely nothing. There were tax breaks on pre-made alcohol making it more profitable for small bars to sell takeaway drinks, a situation that is here to stay after an ATO announcement in August 2021. Even liquor licence fees were scrapped in an effort to help venues expand their offerings.

There was the Dine & Discover scheme too, giving each member of the public $25 vouchers to redeem at any venue, a scheme that is ongoing.

And let’s not forget the Job Keeper schemes, an initiative that provided me with an income when my workplace was forced to close.

Sustainability & ethical dining increased

Whilst sustainability & ethical dining was already on the rise pre-pandemic, the past two years have seen levels reach altogether new heights.

Meat-free consumption has risen dramatically in a way that indicates it’s not a phase with 42% of Australians enjoying a meat-free diet, or reducing the amount of meat they consume. This is backed up by a decline in the consumption of meat between 2015-2020 with a drop seen in beef (-5%), pork (-7%), and sheep (-37%).

Indeed, Australia is only 2nd to the UK as the most popular nation for vegans in 2020.

But it doesn’t end at reducing your meat consumption. There’s also the environmental impact of single-use products like straws, food containers, and cutlery to consider.

I can’t remember the last time I received a plastic straw. Even McDonald’s has switched to paper. And although it’s not as sturdy or immune to the perils of a cold Coke Zero as it’s plastic predecessor, I’m still happy for the change because it aligns with my own values.

Why was 2021 a significant year in hospitality?

Where do I start?

With a lot of new procedures coming out of necessity rather than desire, they seemed (at first) a burden but were revealed to be the answer to our industry’s prayers.

Digital ordering opened up doors many venues didn’t know needed opening such as online ordering for delivery and contactless table ordering. These had the potential to extend a venue’s reach beyond their own walls (and sometimes even beyond their state), giving a new lease of life to businesses affected by lockdowns everywhere.

Local governments stepped up to provide support for venues with the continuation of the Job Keeper scheme, Dine & Discover, and a relaxation in fees and red tape.

Digital payments seized their opportunity to gain popularity over cash.

And the recent push towards sustainability and ethical dining began bearing some fruit with venues offering meat-free products and making a collective effort to reduce their single use wastage.

Indeed, 2021 was a defining year in our industry, and only time will tell if the changes it brought in are here to stay.

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